Bitcoin is a cryptocurrency and a payment system, first proposed by an anonymous person or group of people under the name Satoshi Nakamoto in 2008. Nakamoto developed the concept in a paper. Bitcoins are created as a reward for a process known as mining. They can be exchanged for other currencies, products, and services. As of February 2015, over 100,000 merchants and vendors accepted bitcoin as payment.
Bitcoin is unique in that there are a finite number of them: 21 million. Satoshi Nakamoto envisioned that as bitcoin's popularity grows, the value of a single bitcoin will rise.
What is a Bitcoin Wallet?
A Bitcoin wallet is a software program where bitcoins are stored. Bitcoin wallets are divided into two categories: hot and cold. Hot wallets are wallets that are connected to the internet, while cold wallets are wallets that are not connected to the internet.
Why Use Bitcoin?
There are a number of reasons why people use bitcoin. Some of the benefits include:
1. Bitcoin is global: Bitcoin can be used by anyone in the world.
2. Bitcoin is secure: Bitcoin is a decentralized currency, meaning that it is not subject to government or financial institution control. Transactions are also secure, as they are verified by network nodes through cryptography.
3. Bitcoin is convenient: Bitcoin can be used for transactions of any size and is accepted by merchants all over the world.
4. Bitcoin is anonymous: Bitcoin addresses are not linked to personal information.
5. Bitcoin is deflationary: The total number of bitcoins that will ever be created is capped at 21 million. This means that over time, the value of a bitcoin will increase.
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